tv In the Loop With Betty Liu Bloomberg December 19, 2014 8:00am-10:01am EST
by the dow thanks to the fed. -- his 2015om target for the s&p is a gain of over 15%. news in tech and media. uber looks to patent the surge pricing, some critics call it price gouging. more countries including taiwan are suspending uber. all over that and much more with three venture capitalists. gary vaynerchuk joining us, alan patricof, and david hirsch. they will be with us. here's a look at our top stories.
will the global rally extend to the u.s. for a third day? the s&p coming off its biggest 2-day jump in three years. rising 4.5%. futures have pared gains but still indicate stocks were up and higher. european stocks turned lower. the president of france making ranks with the eu over russia. francois hollande suggesting that sanctions against the russians could be scaled back. he spoke at an eu summit in brussels. that the gestures restaurant is making are what we are waiting for. there is no reason to enact new sanctions. on the contrary, they will allow us to start the escalating the situation. >> the u.s., u.k., and jeremy disagree. -- germany disagree. david cameron says the door is
always.open if russia changes behavior twitter has started selling advertising in russia. twitter's first advertisers in russia include the country's wirelessender and a company. facebook has a problem here it is not as cool as it used to be among teenagers. to 17-year-olds found that fewer of them were using facebook than the year before. twitter's popularity is growing among teens. it's a wrap for stephen colbert. and the conservative talkshow host he's portrayed since last year. he said farewell last night on comedy central. >> another bush governor is running for the white house. people on tv are defending torture. we are sending troops into iraq. when this show began, i promised
you a revolution. i've delivered. technically, one revolution is 360 degrees to where we were. >> he will be taking over david letterman's on the lakeshow next fall. our top story, the global rally in stocks. sb coming off its biggest two-day jump in three years. on track for its best week in almost two months. a good week for bulls. mia saini. >> it seems like we are looking at it every day and thinking the picture is different than a couple days ago. take a look at what is happening. while equity markets seem to be having a strong end to the last full week of the year. next week will be short. msci heading for its biggest weekly advance since the end of
october. you talk about futures, we are paring back a tad. seeing strength in those markets. for its500 will head third straight day of gains. a couple things that are impacting the futures picture and the sentiment for investors. as numberthink of it one, global flexibility. a couple days ago, you had to fed pre-much as look, -- pretty much say look, we are going to continue with the accommodative stance for the next quarter. japan overnight reaffirming to investors that they are going to continue this accommodative stance. they boosted stimulus three months ago. are readye ecb, they to ease as well. the picture is looking pretty good from the global flexibility standpoint. good.bal liquidity looks what about china revising its gdp? >> it played into it.
they're boosting their gdp by 3.4%. is the funny thing. they are still going to hit the for 2014.ll target they did increase the output by $309 million. that is the same output of malaysia's entire economy. >> it gives you the sense of the size. and the scope of their growth. prices, which had taken down stocks, they are stabilizing around $55 a barrel. is that factor? >> i think investors are starting to realize that lower oil is a good thing. we should not be too discouraged. overnight, we had saudi arabia saying the slump in oil prices is temporary. be difficultould if not impossible for opec to curb oil production amid a glut of oil. crude and west texas intermediate. stabilizing against the psychological level for many investors, $60. overall, the picture is looking
pretty good. the last full week for investors in the u.s. >> take you so much. we are watching oil prices. mia saini on the markets. vladimir putin has spoken. obama's turn. the president will give his final news conference of the year. a year that the white house is ready to put behind them. white house correspondent phil mattingly joins us with more. -end affairs are usually a look back. what are we going to hear? is he going to give an outline? change think they're going to try and spin it forward. tough to deny that 2014 was a tough year. year ofted it to be a action. there were going to take unilateral action. but those actions were so often overcome by global events. russia, the rise of islamic quagmire.ia in a ton of domestic issues. low approval rating for the president.
to top it all off, the november midterm elections where democrats got crushed. the president will absolutely try and spin for what he plans to do. most of the questions today will be based on what he failed at over the last 12 months. >> you just listed several of those failures. and pickups in his presidency. is that going to be a glimpse of what is to come in 2015? and his behavior, he has gone in alone on several issues. >> i think the last five weeks is the window into the next two years. there is a lot of criticism of what a president can do when he is a lame duck. he is not running again and his party is out of power. of the last five weeks if you look at what the president has been able to accomplish, an agreement with china on climate issues. the push for a asia-pacific trade deal, that upset democrats. there's the immigration executive action. what you are seeing is the president laying out legacy
issues. not based on one party or another. it is a good window over his last two years when he's concerned about. his perception of his presidency and what he can get done. not necessarily playing to constituents. hadn cuba, hillary clinton been lobbying for so many years to open up these relations with cuba. he did on his own. what about the freedom of the president question you have got congress that is going to be controlled, both chambers, by republicans. how free is he to do anything in the next two years? >> major legislative achievements are not on the table. people always say tax reform. tax reform is something parties agree could be done. the idea of getting that thrill is so complex. on some level because of the political constraints, the president feels like now is the time where they can cement some achievements. canlimate change where he
take executive action, they're going to take advantage of the. goes toe today, this the point of no matter what your best laid plans are, things will pop up. the north korean hack against sony. his comments need to be watched closely. itn the wording, if he calls terrorism or cause out north korea, those are signals from the president. how he responds to it, house officials have been debating this, it will be interesting. >> i'm surprised they taken this long to talk about. >> they want to understand. they want to make sure he's not going to get out in front of something that is untrue. >> we will see at 1:30 p.m. thank you so much, phil mattingly, our white house correspondent. moving and shaking this hour. blackberry's ceo john chan. he's hoping his turnaround plan for the once dominant smartphone
maker is gaining traction. the latest quarter, blackberry posted a profit when analysts forecast a lost. the company missed estimates on sales. it is clear that investors are not sold on the prospect of a turnaround. blackberry is down as much as 4% in the premarket here's we will talk with blackberry's john hen at 11:30 on "market makers." my guest host for the hour, entrepreneur and social media marketing guru gary vaynerchuk, cofounder and ceo of the digital agency vaynermedia. he was also an early investor in companies like twitter, facebook , all of your smart bets. tumblr and uber. blackberry, do you see a flaw to john chen? >> no. i say see you later.. >> really??
>> applies to the hustle and action. ultimately, that should has sailed. the consumer dictates these outcomes. i do not see the movement at the consumer level for the ability of the organization to innovate as they go into 2015, 2016, and 2017 two win that game. >> john chen is focused on the enterprise end. maybe they will say goodbye to consumers. >> that is a fair bet. that makes a ton of sense. >> we still have a lot of blackberries. >> that is for sure. people are seeing if they can build a business. the expectation for the stock prices and values still has way too much consumer bought in to that. so they pivot completely. violation --the
i'm not sure the valuation is correct or >> we spoke to forced heinz -- i'm not sure the valuation is correct. >> we spoke to first and heinz. >> in terms of what i see from execution and what his team is doing, they are continuing the path. my fingers are crossed that they are going to make it. >> john was onstage stage the other day saying that a lot of are youersation was crazy, why would you do this. >> he said the conversation has dissipated. an exit for blackberry would be what? ceo responsible for blackberry not innovating over the last half decade saying there on the right path would concern me. i have no interest in hurting thorsten heins' feelings.
>> he feels like he got handed a whatever.f >> that's fine. i am just not bullish on it. >> not bullish on blackberry. you are bullish on other things. gary vaynerchuk, cofounder and ceo of vaynermedia staying with me. do not like the surge pricing on uber? uber wants to own the concept. teenagers are not going on facebook like they used to. we see what that means for folks like mark zuckerberg. we will be back. ♪
it is doing something unusual to protect its business. filing for patents around its price search technology. the company has filed 13 patents, 10 have been rejected amid criticism the company is price gouging customers. i want to bring in entrepreneur gary vaynerchuk, ceo of vaynerme dia and an early investor in uber. >> second round. >> you caught up. better late than never. why did you pass? two founders were not going to operate the business. at the time it was uber cab. >> what do you think about the controversies? let's take price gouging. >> you mean price surging. arehave to type in that you
confirming that you understand that you are getting charged more. no different than when you pay more for a first class ticket on an airline than a coach middle seat. company, like facebook before it and google or microsoft or apple. anything that gets big, the world likes to tear down. right now, every news article and tv segment talking about it is good for the media companies. it's worth debating. >> there's news around it. what about the rape in boston and new delhi? there are serious issues around uber. >> anybody who is watching realizes this same unfortunate things are happening around regular yellow cap taxis and black cars. nobody is talking about that because the uber brand is not associating. >> because nobody is raising at $40 billion. >> it is simple. it comes down to capitalism,
modern journalism, a company that is not even five years old thating in the hypergrowth companies prior to this never had to deal with because the scale of the internet itself, where all the services are built on, is creating speed. >> have you reached out to uber, had they reached out to get some advice? >> travis is a friend of mine. i'm never going to add my two .ents i don't think it is appropriate. >> you are great at marketing. you know about brand building. >> as flattered as i am, i think at the end of the day i have too much respect for the fact that they have good people and a lot more context than i do. me, i'mw they can tap not unaware of what is the story right now. the viewers of the
show like this realize these go in cycles. the behavior of the consumer -- >> they are still using it. is providing value is providing value. >> do you think they should have done something differently cu? >> i'm a net net guy, why didn't they come out faster or do this? it's one of the fastest-growing companies of all time. i'm not going to judge against that. >> regulation seems like a real possibility. are you concerned regulators could put a big hit on the company? the alcoholom business. i'm an investor in uber because of the archaic and ridiculous in americang laws
that forced me to look outside the wine business as in entrepreneur. money tries to stop innovation. >> it should go unfettered? >> no. i think regulation is important. regulation is different than people being affected by innovation kicking cash to politicians. are we going to talk real? we know exactly what is going on. >> we are going to talk real for the rest of the hour. and more.rchuk american apparel may not have seen the last of its founder dov charney. what he's up to. and investors running away from nike in the premarket. what is causing the exodus. ♪
>> you are watching "in the loop." bloomberg television. i bet it live. a look at our company news. american apparel founder doug turney might try to regain control of the company that fired him. charney teaming up with irving place capital to make a bid for the retailer. american apparel's board fired him for misconduct. samsung may increase its dividend by 50%. maker of's largest smartphones says it's board will decide by the end of january. ants to boost returns
to shareholders while earnings have fallen. nike shares down 4%. the company has been hurt by slowing demand in western europe and emerging markets. railed orders t estimates. bloomberg is "on the markets." a huge run. 420 points.ver we look to be building. s&p futures up. "on the markets" again in 30 minutes. back with my guest host veteran investor gary vaynerchuk, a lo ngtime investor in many companies pay he recently teamed up with steve ross. they invest in startups. steve is betting big. two companies you want to safebox.rezi and we had the ceo's.
cofounder of is the restaurant reservation act. and the cofounder and ceo of the monthly subscription service. netflix for christians. you get inspirational biblical quotes. i'm really curious. youtrying to figure out, know what makes a good business. how is this a business? and barkbox have been popular. we are sending boxes filled with bibleational quotes, verses and also products from socially conscious companies. >> like what? >> last month, we sent out candles.
there are companies that have 141 missions. -- one for one missions. buy products and they use the money for charitable foundations to do good. >> why with that interest you? >> i invested very early in $800box and barkbox, an million valuation at birch box. this is a category that is authentic. i'm a fan of betting on the jockey. ,rom a business standpoint people get something each month do not cancel. >> they do not cancel. >> do you know how many gym memberships are going on. it is a smart business model. the box movement is happening. you try -- this business is predicated on his ability to
curate authentic, faith-based products. >> how do you scale this up? the christian market in the u.s. is huge. boxcale up like any other company. we go after our target audience and we grow. platform we will be a where we can bridge the gap between technology and how people strengthen their faith. there are some other place, too. >> ben, what about rezi? you buy tables ahead of time? restaurantsr with to secure tables at great restaurants at great times. then we offer this to customers on the app. >> you watched when? >> in june in new york and in december in l.a. >> so, this is what? >> this is a no-brainer.
if you look at opentable and things of that nature, technology continues to shift. a mobile experience in a marketplace that has not been dynamic. we talked about uber. there is a perception that talent anybody to-- -- talent anybody to show me the available table. we had those tables. thosenot one of concierge services. ben is established in the market. he explains the value thingstion, including like higher check balances. solve arying to business problem. they are running businesses where they cannot fit another present in. coming paying for people in. we're trying to solve that.
>> there's a big lead, opentable. >> myspace had a lead on facebook. an execution game. our advantage is mobile first. opentable started on a desktop era. mobilehacking 2015 and behavior. >> yes, i agree. but usually first movers are able to hold onto their market share. how do you get your way in? >> there's no question opentable paved the way. opentable now, given weather model is and how to system works, has created problems for restauranteurs. the reason the 8:00 table is not is because the restaurant does not have confidence in the customer
coming through opentable. thee looking at the system, ecosystem, what restaurants want and what consumers want. there's a big opportunity to change the model and a platform for both sides. >> thank you guys. now i understand. bben, cofounder and ceo of resy. faithbox ceo, willie. gary vaynerchuk stays with me. this is not what sony wanted for christmas. how did some of the movie industry's most powerful executives get into a huge mess? the lessons learned. it's notchat -- snapchat caught in sony's web. a private e-mail predicting the implosion of facebook and mark zuckerberg. ♪
broke into sony's hollywood unit probably spent months collecting passwords. this is not a spur of the moment operation. sony is still reeling. what are the lessons other companies might learn? mia saini has been investigating. we already know their are and a lot of companies that are terrible when it comes to cyber security. >> not just cyber security, also when it comes to crisis management. i was working the phones speaking to experts. they said there are more than three lessons. i've come up with three. they said there are hundreds of lessons that sony's peers can learn. the first is probably identify your crown jewels. i spoke to a corporate governance expert at third creek advisors. he told me it is amazing how
many top companies do not know what their most important asset is. sony's case is the scripts,whatt passwords, employee insurance plans. that information should have been put in a place that thieves cannot find from a physical and digital point of view. the location should also be constantly changing. the second lesson is threat a wareness. you should monitor alarms. it is not just important to know and have the top end system. you need to understand how you can turn on the system. that is according to a cyber security expert at the george washington institute. post-breach plan. sony new they were going to upset the north korean government. they should have anticipated their response.
should have planned for this and had their statements responses putth together before this. >> thank you so much, mia saini. i think they did know this response was going to be that that. wecohost gary vaynerchuk, saw some e-mails that just came out yesterday. seth rogen was saying do not change this film, i'm not scared . they knew there was going to be pushed back. >> this is an intense story on some a different levels. >> what did you learn? up something i had been worried about. i think security is something that people do not think about. we're not great about thinking of worst outcomes. now that this has happened and
you have got to look at it in a hey're deeming it a success. the hackers have won. no other way to look at it. >> you feel that way? >> i do. that gives momentum for more of this. i actually think this is a very early indicator of more to come in a lot of places. all there tweeting time. you put out your thoughts unfiltered. did it make you think -- earlyot very affected in 2007, youtube and twitter. by 2008 or 2009 i realized i'm on the record. my systems have access to everything. i've written every text and e-mail that i have put out for the last five years to six years as if it is on the record. i'm living a life where i believe everything is being watched. >> is out in the sunshine.
>> it has made me a better guy. maybe not as fun. it has put me in that place. i did not respond that way, i was not scared because i have been living that life. >> one of the sony e-mails that came out from evan spiegel, who was e-mailing with a sony executive. facebook, when ol, market protects stocks co facebook market cap will plummet. onlygram may be the saving grace." comparing it to yahoo!. he says there is no substantive brand advertising. do you agree? >> no. but i understand. every entrepreneur taking on the .ncumbent has enormous bravado
i'm sure mark zuckerberg said the same thing about myspace. of ao not get to this size company without a little bit of it. you definitely need competitiveness. evan spiegel is talking. if you look at facebook, as we is here right now, facebook probably the singular best advertising product on the internet. >> why? >> facebook's level of data is insanity. they know so much. they are plugging in data from the outside world. partnerships with mastercard and data logic. the conversion funnel is incredibly. it exponentially over performs banner ads. >> and other forms of advertising. when you talk about this company, facebook appending myspace. you are trying to up and the advertising world. in one of your tweets, you said
why you do not need agency experience to launch an advertising agency. >> at the end of the day it is about bringing value. i'm trying to shake things up. >> bringing value sounds very corporate. give me the gary vaynerchuk take. are% of the companies wasting their money on tv ads, print, radio, television. >> what? >> yes. you are paying historic pricing instead of understanding what is happening right now. the founders of yikyak are telling somebody white snapchat -- why snapchat is not going to win in the future. people are back at the arbitrage of understanding what is happening now. >> what is going to give you the confluence of viewers that a television platform gives you? >> i can reach more people every day than the super bowl on hth of theor an eight
cpm. do you think people are paying attention to a television commercial customer? >> they do. >> theyhave in the past. areink super bowl ads underpriced. in the past they have. everyone is dvring and netflix. everybody is grabbing their phone. >> 25% of clicks on the internet are robots. >> same thing i am talking about, banner ads. facebook in screen, people are .eeing it
i cannot wait to come back here and say it is instagram, i do not care who wins. what i'm onding to disrupt, this sec if you are trying to sell a film or sneaker, there are better thearbitrages going on than traditional media is talking about. >> they do not understand any of this? >> they understand that there is laziness and other rationale. different than mine except i have historic results of using to com, youtube, twitter create sales, wealth, roi. >> gary, stay with us. gary vaynerchuk of vaynermedia. a robot invasion. goting the salt and pepper
>> it is a friday. near the holidays. we are thinking about what we are going to buy. back with my guest host gary vaynerchuk, his business interests run the gamut from high-tech to find e wine. you've been tweeting wine ideas. andeople are consuming it as gifts. >> people treat you and get a discount? twi'm always hustling on tter. wine's not your thing,
this machine like the one in "big." a robotic fortuneteller. pick it up at hammacher schlemmer, the 166-year-old purveyor of one-of-a-kind gifts. merchant has brought some great gifts. >> i have some great ideas. i would like to show you some unique products. the first one is the only ought to stop cordless -- the only auto-stop cordless tire inflator. they do not know if they have got the right pressure. this is the only product on the market, you set the psi on the product and you hook it up and it stops when you're tire is at the right pressure. >> perfect for a woman. >> excellent for anyone. to turn to, on and
i'm out the door. >> do next product is our iphone binoculars. y are a pair of the nokia lays you attach your iphone to. you can share this. at a sporting event, not one person is looking through. everybody can see through the iphone. >> cool. >> what is your favorite? >> we might not have time for all of these. >> the next one. the first home version of 8 millimeter to digital video converter. films from when my sister and i were young children. this converts that film into digital media. the first at-home unit in the marketplace. the next product is our turkish probe. -- robe. a classic product made for us in turkey.
>> i see people, i see these advertised. what is so great? soft and light. i never walk around with a bathrobe. >> my wife is obsessed. sell it to me. 22 ounces of cotton per square yard on this robe. this will keep you dry, warm. >> i look at these, they are great. i think about amazon and other retailers. particularly amazon. if you want to buy something like this you might find it on amazon. how do you compete? >> we look for exclusive products. we look to see if amazon is selling the product or not. if they are not, we are interested. a lot of these products are from
smaller inventors who do not have the capacity to get into amazon. they might not have the capability to manufacture enough product. they are new to market. hammacher schlemmer has always to market. new >> how small will you go? will you go with somebody who produces 10 units? value.nds on the market a few years ago we had the dimestore rocking horse. somebody had 10 of this comedy refers -- we refurbished them and they sold out immediately. we are looking for exclusive products. >> speaking of exclusive. you have got the killer well. what is that? >> killer whale submarine and the hovercraft. >> we sell those. conference 7-person bike in new york. >> a seven person bike. how much is that? $20,000.
>> 56 minutes past the hour. bloomberg is "on the markets." equity futures are building on some of those gains. coming off from the session highs. we may not be able to extend this rally. the dow up over 420 points. "on the markets" again in 30 minutes. half an hour to the opening bell. breaking up may be hard to do. madison square garden is looking forward to doing it. great craft partners' alan for our joins me countdown. a look at the headlines hitting our radar today before the bell. you are watching "in the loop." ♪
>> welcome back to "in the loop." 30 minutes away from the opening bell. futures indicate stocks will be higher at the open. the s&p coming off its best to date rally in three years. cannot keepfirms up. they fail to keep up with the stock market that has boomed for five years. yesterday, 32 financial firms and be 500 largest companies. ofpared to 41 at the end 2006. francois hollande is breaking ranks with the eu, suggesting that sanctions against russia could be scaled back. hollande spoke at an eu summit
in brussels. that the gestures what we areking are waiting for. then there is no reason to enact further sanctions. on the contrary it will allow us to de-escalate the situation be a >> the u.s., the u.k., and germany disagree. david cameron says the door is open if russia changes its behavior. shares of blackberry filing. the company surprised analysts a profit. we will talk to john chan on "market makers" at 11:30 eastern . madison square garden looking for other ways to split up the company. in october, msg said it was considering a separation that would keep media and sports together. new york rangers and entertainment businesses.
a good season for the new york knicks. 30 minutes from the start of trading. the top 10 headlines before the bell. julie hyman joining me. also our special test, alan patricof, managing director and founder of greycroft partners. one of the big venture capital firms in new york. number 10, uber. the controversial car service app just declared illegal in taiwan. the next country to ban it. patent onlied for a its algorithm system that measures demand. its price surging technology. they want to patent this. i do not know. critics say this is unfair. they are actually price gouging. what do you think? an enormoushad effect on our economy. we've started a new ways, a sharing economy.
maybe not hundreds but certainly 50 companies have started up. they are sharing everything. >> everything is shared. is not really sharing. it is a car service. for not sharing your car. >> people are giving -- you can become a driver. do you know anybody who has given up their car and are just taking uber? >> no, but if you think of the word uber, uberization has become a term and it means sharing. >> i am skeptical. there is a video online. brendan greeley on our website has this uber rant. >> brendan greeley granting. speaking ofne, ranting. sony, the plot thickens. hackers likely spent months collecting passwords studying sony's network before releasing .ersonal e-mails
in response to sony's film "the interview," which depicts the assassination of kim jong-un. everybody on twitter saying how dare sony in response to sony's film "the do this. let's be fair to sony. knew this was going to become traversal. -- they knew this was going to be controversial. there were threats of bodily harm and they wanted to make sure people were safe. this is not the first time we have seen hacking like this. we have seen it on a more expanded level. it is a scary for copyright products in general. i'm a big believer in protecting content. i think it also protects our privacy. byse things are threatened something like this. this is not going to be the last
thing. >> that is what gary vaynerchuk was saying earlier. number eight, stephen colbert, a star-studded last by something like this. broadcast. stephen colbert moves on to replace david letterman on cbs. >> when this show began, i promised you a revolution. i have delivered. ishnically, one revolution 360 degrees. alan patricof, the reason why -- ert is picked brings in a new audience. it is exciting. >> he's a talented guy. the question everyone is asking is what will the real stephen be like. >> he's set to change his name.
different audience. jimmy fallon has done wonders for the tonight show with his employment there. >> american apparel, dov charney was fired three days ago and reportedly working with irving place capital in a deal to buy the company. doneis a crazy, what he's and how he's gotten away with it. >> a lot of it has never conclusively been proven but there have been a lot of allegations of sexual harassment and that he allowed a blogger to as italiane photos nation for someone who criticized the company. he was fired after a long internal investigation. the question is can he regain some sort of position at the company? stake but he a 43% shares of voting rights with standard general.
they've pretty much taken over the company. >> if a private equity firm is willing to stick with him, they must know something the public does not know. you never know what is behind-the-scenes. >> it is like any ceo that you invest in. the ceo is the company. >> i hope we do not have to deal with those kinds of controversies. we could not survive. >> jeb bush resigning from barclays. the london-based multinational bank. preparation for his likely 2016 presidential campaign. he will step down as an advisor at the end of the month. this man is really putting the pieces in place for a run. >> no question that this is the precursor. no better signal than what he has done. in's make sure we count him for sure. >> this is what stephen colbert was referring to. i have a revolution, a full 360
degrees. bush running for the white house, troops and iraq. he made a joke. we can't get away from the bushes or the clintons. >> it could be another bush-clinton race. >> let's hope. at lease from the clinton side. i think hillary would make a great candidate. we are going to see. she said she was going to tell if after the end of the year. >> you might know. >> i do not know that if i knew i would not tell you. >> we are going to stay on top of politics. president obama will give his final news conference of the year later today. on vacationng off in hawaii. he will be getting a lot of questions about cuba, the sony hack, and others. ♪
halfway through. time for our deep dive into u.s. politics. announcing hesh is exploring a presidential run. to the executive action on lifting trade restrictions with cuba. the president is going to be speaking later today at 1:30 p.m. for his last press conference of the year before he leaves for hawaii. he will be asked about many issues p that with me is out patrick off, famed -- he will be asked about many issues. with me is alan patricof, fame venture capitalist. before we get to 2016, let's talk about this past week with cuba. anm a business lens is there opportunity? >> i've thought about this in the last four hours. tsunami, as is a
dramatic change. if you want to be an investor, i would look to cuba for the next 10 years. i'm not sure in the next 12 or 20 four months we will see a dramatic change. it does not all the sudden open up. it does open the door and people are going to start conversations. technology standpoint, i don't think there's been much technology transfer one way or the other. that is a new area. theirre not going to open floodgates to new ipads that i think there's going to be a thirst for technology. as long as it does not affect the defense or critical areas, they are going to have opportunities. if i were running a company and there were any hint of doing , i would get on the first plane i'm allowed to get on. >> it is obviously too early for your firm.
market open, do you put somebody on it to do some research? do you think about what you want to do in the next 12 months? >> it is a dramatic seachange. if i were a company, a venture capitalist is not going to all the sudden invest in cuba. i don't think were going to see that opportunity. >> unless across your desk. ande focus on the internet mobile investments. our companies, they know better than i do. if there is something that could have a possibility, i would encourage them to send someone down and spend a week and find out what is going on. >> on the political side, a lot is made about the fact that hillary clinton for years when she was secretary of state had been pressing the president to do exactly what he had just done. presidentew, did the hand hillary clinton a gift?
as she prepares for her run or did he hurt her? >> i don't think he had that in mind. >> he might not have had it in mind. >> after the election, everything is on the table. that is why he has done this about immigration, climate change. now we are seeing the cuban announcement, it is really dramatic. i was sittingidly on top of the mountain top in vermont going skiing when the cuba thing developed. how many years ago that was. >> it is amazing. >> more than a lifetime. >> clinton, as i mentioned, you are a, you have been a big fundraiser for the clintons. the word now is that she may be vulnerable to she was not seen as vulnerable six months ago or 12 months ago.
with this lineup of republican candidates and possibly another candidate in the democratic party, elizabeth warren. would you agree? >> she has not done anything, whatever she does there will be a long time with a lot of developments. she has mixed six months of occurrence of ted cruz. >> they are getting all the attention. >> let them have it. that goes away quickly. bill clinton started running in the summer of the year before the election. he was able to run for president with plenty of time. she has time? >> she has time and she is keeping out of the noise. the attacks are going to start the second she decides to run or not. fundraiser who loved jeb bush, he was on with
his earlier this week. i want to play at what he thought about the republican lineup. >> with his tweets, it is like a poker game. he is adding about half his chips to the table. is telling everybody who pretending and shaking their hand, ok, step up. >> do you agree with that? jeb bush has put his hat in the ring. puts pressurethat on the other candidates. their names are in the paper every day. when they are ready they will make announcements. i do not think it has forced their hand. we all know who the primary candidates are, you can name them, chris christie, ted cruz. we do not know the possible democratic candidates alternatives to hillary other than elizabeth warren. >>. it's a little bit more unknown. stay with me through the hour. alan patricof of greycroft.
>> welcome back to "in the loop." the most important stories before the bell. julie hyman and out patricof, managing director of greycroft partners. with me for the hour. expanding its recall of vehicles with airbags made by takata. more problems. the automaker is recalling mustangs and gt models nationwide. for a while, you woke up every day with another recall on these airbags. when is this going to get resolved? >> it is not just the airbags. i saw the number today, there
have been 20 million cars recalled. not just ford. for other reasons besides airbags. starters, the cars just turned off. it is frightening. it has affected almost every brand. toyota was the first one. >> have you gotten recall notices? >> if i got it, i might have disregarded it. they are know if asking you to do maintenance or if they really have a problem. >> seems like they have to revamp the whole system. >> number three, facebook becoming less cool with teenagers. 88% of teenagers using social media are on facebook, compared to 95% in 2012. and anecdotally, i hear from the young ones out there at my kid''
school that they do not like facebook. they instagram. >> i have a 17- and 18-year-old, they say forget facebook. facebook is not going away. facebook is here forever. facebook is one of the few -- >> it is like google. >> they might have ups and downs. >> do they had a young person problem? >> if they have a problem, they have done innovative stuff. things they are doing with news, for example. they seem to continually innovate. >> everybody hates on the facebook moms. those ladies spend money. it's not as if that is a worthless demographic. >> true. >> are you on facebook? >> i am. it's -- we're worth something!
>> everybody wants millenials. >> we just invested in skimm. >> the e-mail newsletter. >> we did that last week. we are looking at something called the muse, another newsletter that is addressed to young millenials. women millenials. >> what i find funny, delivering it the old-fashioned way, by e-mail. 2, oil rebounding from a 5-year low. wti below $56 a barrel. bill gross says slumming oil prices is going to force the fed to hold off. it willer firm says no, allow the fed to raise interest rates. >> this has been going on for the last several days. i'm on the board of a big reit. it's an indicator of where inches rates are going. here interest rates are
make the best entertainment part of your holidays. catch all the hottest handpicked titles on the winter watchlist, only with xfinity from comcast. >> welcome back to "in the loop ." we are bringing you the most important stories you need to know before the opening bell. let's go to the number one story -- you cannot ignore this huge rally in global stocks. the s&p on track for its best week in almost two months, all thanks to, who else, janet yellen and the fed -- i mean, what does that tell us about investor mentality? one statement, one meeting will fuel a 600-point rally? >> nothing we do not already know. in other words, stocks are
reliant on central-bank stimulus. already.now there were complaints the statement was not clear and she was clumsy with it, but now we have clarity where it looks like the rate increases will come in the second half of the year and investors like a roadmap. they like transparency, certainty. >> the extremes are pretty extreme from one day to the next. -- i agree. >> it is why i got in the venture capital business in 1970. i had been managing public stock and i got tired of the everyday psychological changes. >> you were tired back then. today.ven worse >> much worse. we did not have the internet. >> staying with stocks, we are following the last week of trading -- full week of trading for 2014. join us for his forecast now and calmly, afor 2015,
head of research -- tom lee, head of research. uber bull because you are bullish on the markets from what you see. a nice double digit gain for the market driven by both earnings growth, and something investors do not believe is -- p/e expansion. it is pretty common to we have the end of the bull market. we should be looking for expansion until we have a their market. >> -- their market. >> so, this will be a 16% gain from now. >> that is right. it was probably close to 19% when we published, total return. >> do you see any correction in
the middle of this at all, or are we going straight up? >> corrections are very hard to forecast. we do not try to talk about them, but, yeah, it is possible. i would say it is possible. again, if we get a correction, we would need to buy the dip. >> by the dip? >> yes. >> most economists agree that the economy is improving, the job market, etc., but when people point to risks, they are pointing internationally, the price of oil, oil-dependent nations, and there is a debate on the effect that it will have year. it sounds that you do not think it will have an effect here. why won't it? >> it will. we have to watch it. the u.s. has been less sensitive to global development. the u.s. is very sensitive to what happens in the u.s.. we spent a lot of our work thinking about where there could
be surprises in the u.s.. if you say oil has been week and the effect globally -- first of all, in general, it is a positive take as it is a big positive in the u.s.. what people are not realizing if there are other things happening that my surprise of. >> in a good way or -- surprise us. >> in a good way or a bad way? >> a good way. >> i will be the nervous nelly. there could be summarized -- surprises on the negative side. show would come rearing its ugly -- who knew russia would come rearing its ugly head. there are going to be and it is an area of people have been watching. whether it is europe or china, the question you have to ask is how is that narrative in line with what people are expecting and how will that change the path of central banks or businesses? the good news is for everything we have seen in the past 12 months, it has not change the course of how businesses are behaving and it is not changing
central banks, so it is not underlined -- change the underlying thesis for stocks. >> it is not my area because i do not play the stock market, but i am a contrarian at heart, and i believe in that, and it seems everything has a cycle, and in our plane the market, i would play the dip in russia. stocks are bad. if i had the guts and i played the market, that is the kind of thing -- even the oil industry, the same way. we have seen enormous declines. people have lost billions of dollars. there are probably a lot of opportunities. you know, it is a psychological moment where everyone is ready to throw everything out the door or out of the window, that is when people are able to make a lot of money and returns. it on the head. if you look at where there are opportunities -- the u.s. market has had a nice bull market. there are opportunities outside of the u.s.. i do not focus on them, but i would agree.
>> you think energy could be an opportunity here. >> yes, the reason i believe energy is an opportunity is we have seen broad-based liquidation. i know clients want to get out of anything elated to energy, including equities, bonds, sectors -- in the next 12 months it will pay to look through that and say where are the good names, the quality aims, regions where there are opportunities, and i think it is a big chance for people to make money. >> what are your stock ideas for 2015? >> 2015 will be a year where the opportunities evolve and that was not the case in 2014. where? let'sies get specific. >> you want to focus on tech, for instance -- names like microsoft, hp, oracle -- industrial-type names. as a contrary in, i might say a name like ibm because it has out per -- under-performed for so long.
people have said it is a financial engineering stock, let's avoid it. but, you know, there is a core business there that will benefit if investment spending picks up. >> what you think of this terrific ceo at xerox and what she is doing? >> it is not one of the names we have been recommended or thinking about, but, you know, when you look at corporate action, you see they have a huge impact on businesses. we have seen this play out many times over the last few years. >> one thing i thought was interesting in your report is you said "active managers will recover their self-esteem in 2015." >> i hope so. >> what makes you say that? >> you know, it is a couple of things. we have been trying to understand why active management has had a rough three years, right? asked yeah. >> probably the worst three years in a row. there is not a chance to make
big bet on calls. tech and utilities this year, for instance, have done the same. the second is that the equal-weight s&p has underperformed the market-weighted s&p. it has varied month to month, as 1000as been as much basis points. if you are an active manager trying to buy 40 stocks, the market has been new because of apple and the big wave. that is a mean-reverting relationship. i do not know the timing, but next euro we will seek -- next situationll see a where the equal-weight -- >> goes back to normal? >> yes. >> thank you. timely. -- tom lee. alan patricof will stay with me. thank you, to julie hyman. the former fed chairman showed up at pimco with bold predictions. for amazon prime
customers in parts of new york city can order daily essentials online and have them delivered in, yes, one hour, in a new service called amazon prime now, the latest salvo in a delivery war competing to get services as quickly as possible to an increasingly impatient customer. still to talk with us about all things retail, alan patricof. what did you think when you saw this service unveiled? >> cosmos. >> back to the prior one, right? [laughter] >> deja vu all over again.
there are a lot of delivery services. we see at least one new delivery company week. the most recent, delivery.com. they are using bicycles, in some , or cars thatrs are rentals. maybe they are using horses, i do not know. [laughter] >> for the cost, is it worth it, or is it just a gimmick at this point? >> i think it is a gimmick. it is expensive to do something like that. when they go to deliver and someone is not there, they get a itusal, they have to bring back -- i do not think you can do this on a massive scale. i saw amazon has a one-our service and a two-our service. how many things can you wait two-hours for? >> it adds the pressure. amazon says we have the money, we have the resources, where as
a smaller company selling goods cannot do that. >> i think it affects a lot of local retailers who, i am sure, feel threatened by this, because that is what sustains our neighborhoods, the local supplier. >> right, but it is not just the local supplier, isn't it the startups you are investing in as well? >> for joy, i do not think we have any directly hit by this one-our delivery, a we have a company called bo, which is like which has beene, totally mobile and has moved to the web, and they deliver massive grocery goes at a very low cost, very competitive with and deliveredtco in a day or two days, and that is adequate for most people. >> and there is no pressure to up the speed at all? >> i do not think they can. i honestly do not think it is
necessary for most people. i mean, how much merchandise new you need to buy every day? >> right, and wide you need it so urgently? i notice at gray croft you have been focused on fashion e-commerce, and i got this e-mail where you present to the ceos of the companies you invested in and their retail items you could buy as a gift. i thought that was clever -- trunk club, others. what is so attractive about this space for him? >> i think the e-commerce space is a very hot area. it takes out the middleman. it takes out the local, off-line requirement. on the other hand, very honestly, almost all of these companies are now finding out that it is effective to have some local presence. trunk club has opened up a unit in new york. last week there was a pop-up store that i went to go see. another pop-up from combatant
gent -- suits for $200. everyone seems to be finding a need for some kind of local presence, even if it is just to look at the merchandise, which warby parker does, people like that. >> you will be meeting with macy's, bringing some of these companies with you. >> we have a program where we bring notches to retailers, but any company that wants it -- bloomberg, if they wanted, microsoft, ibm -- we pick the ones that might be appropriate. today happens to be a macy's day. we are bringing in seven or eight companies to expose their staff, whoever they put in the room, to hear about these young companies that might not be on their radar otherwise. >> do you find a company like macy's, for instance, they are open to these startups, the technology, and the items? >> we did one for "the new york
times" and we had about 100 people in the room. , and weit is the ceo want people in the room who could possibly give them business. the biggest problem for young companies is getting access to the decision-makers. macy's is certainly enlightened -- we will see what the turnout is -- from the list i saw they are turning out good people and titles, at least, means there had been in hearing about new technologies. >> right, the decision-makers. great to see you. thank you so much for staying with me through the hour. alan patricof of gray croft partners. next, blackberry 10 turns a profit, but -- turns a profit, but that might not be the whole story. we will talk with the ceo at 11:00 a.m. eastern -- 11:30 a.m. eastern, and ben bernanke -- we have the former chairman's economic forecast and what it means for pimco now that he is working with them. we will be back. ♪
>> well, you know we have been following the drama at pimco. he continued to separate themselves from former chief investment officer bill gross. covers pimco and she joins us with a look at the new thinking, and not just the new thinking, but who gave us the new thinking that gave them the new thinking. >> exactly. they had ben bernanke speak to them. they have quarterly forums where they better ideas around and talk about what the outlook will be. they usually get brand name speakers, and this time, ben bernanke. >> who else would you want, right? >> exactly. >> he, surprisingly, was very different from what bill gross new normal outlook is, right? wax there are a lot of different -- >> there are a lot of different ways to interpret what
the decline in oil prices mean, oroon for u.s. consumers, bad for companies. pimco says there could be a shock if companies default, but the main view is this will be a good thing. in the long-term, you have the u.s. consumer who is feeling better, household finances are better, and the economy looks pretty strong. >> will this change the way pimco invests given this new frame? >> they do these checkups -- that is how i think about it, i guess, to see where they will be focusing in the near term and they said for the new normal pieces the interest rate emphasis has largely been removed. it has largely been priced in. ignore underweight, high quality in treasuries. vieww does bernanke's really different from janet yellen? >> there is a lot of similarity. if you cannot get janet yellen in, the next best thing would be
ben bernanke. they have these powerful outlooks and pieces and everyone looks at them for guidance, but then you add the ben bernanke seal of approval, and it doubles the impact in a way. work withhe going to them, or will there be a formal relationship? >> there was a rumor earlier this year that they were trying to hire him. to what extent that was true, i have no idea. 80 people heard he was coming in for a forum. i do not think they would turn him down if he wanted to. >> so, if they could not get him to join full-time, they got the next best thing, bringing him into get the outlook. mary, thanks so much. mary childs of bloomberg news on pimco. that does it for today. obama willresident host his last news conference of the year before he is off to hawaii for vacation. you can watch it right here on bloomberg television and streaming on our website, bloomberg.com/tv.
>> it is 56 minutes past the hour. bloomberg tv is on the markets. i am mia saini. 30 minutes into the trading session -- let's get you caught up on where stocks are trading as we close out the last full week of trading in this 2014 trading year. u.s. stocks are fluctuating after benchmark indices have their best to-day rally amidst supports -- efforts to the rally from the ecb, continuing with monetary easing, and we heard from china saying gdp, boastingise
0.4%, equivalent to the entire economy of malaysia. the dollar is up about 11.5% this year, on track for its biggest rally in a must a decade, but there is a downside to the strong dollar. joining me with a look on what we can expect from the dollar going forward is andreas long. you focus on currencies for bloomberg, and what is and the strain -- interesting is because you say fluctuation in the dollar, it could have an impact on the earnings for companies that rely on selling goods in denominated assets. >> we have heard companies reporting they have been affected by strong dollar, and overseas revenue is less because of the dollar rally. for example, coca-cola says
profit is down by 5% and 6%, projected next year, because if he the dollar strength continued. >> it is adjusting if you compare it to the way the ruble has been trading. that has not been on many companies radars, nor should it have been. >> even with a company that is engaged in hedging, even for the company who see oil prices this year might be weaker, companies who are aware of the potential decrease of the ruble, they were surprised by how drastic and steve the depreciation was. for example, -- drastic the depreciation was. the ruble is down 50% on the year. nobody really expected that kind of move. theselot of the barriers companies have put in place have been blown away. >> and very little sign of
relief. despite the fact that we have been involved with how the dollar is turning and the equity market as well, it does not seem these companies will get a break anytime soon. >> analysts are forecasting the dollar to be rising against the and share,t the euro and you could argue with the dollar rally kicked in already, these companies are now aware of what they will face next year and some say they will put more hedges on, and there will be more potential indications of the rising dollar. >> where will the dollar the next year? click analysts are looking at the dollar -- >> analysts are looking at the dollar-yen up against most currencies. this year, we have seen and 11 -- an 11% rise. most think it will continue. the move will most -- be most drastic against the yen or the euro -- euro.
>> you had janet yellen saying after the first quarter you can see an increase in these interest rates. andrea, thanks. we are on the market again in 30 minutes. "market makers" is up next. >> life from bloomberg headquarters in new york, this is -- live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> we will see if the rally has legs. will there be a sequel to this horror film? we will take a lesson -- a look at lessons learned from the cyber attack on tony -- sony. retailers have your number. they know you are looking for the ultimate shopping experience. -- we are starting e